Sep 19, 2018  
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Internal Audit Department Charter
11:12:00 Internal Audit Department Charter

 

1. Introduction

Chattanooga State Community College is an institution of the Tennessee Board of Regents (TBR) system.  The system is governed by the Board of Regents, consisting of 19 members (the Board) as determined  by state law. The TBR Audit Committee is a standing committee of the Board. In accordance with the "State of Tennessee Audit Committee  Act of 2005," the System-wide Chief Audit Executive reports directly to the Audit Committee and the Board and oversees the internal audit operations. Chattanooga State Community College employs an internal auditor in accordance with TBR policy.

2. Purpose

Internal audit is an independent, objective assurance and consulting activity designed to add value and improve Chattanooga  State Community College operations.  The mission of internal audit is to enhance  and  protect  organizational  value  by providing  risk-based  and objective  assurance, advice, and insight.   Internal audit helps Chattanooga  State Community  College accomplish  its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.  Internal audit assists Chattanooga State Community College's management  i n the effective discharge of their duties and responsibilities by evaluating activities through assurance and consulting services, recommending improvements, and providing other information designed to promote effective controls.

Assurance services  involve the internal auditor's objective assessment of evidence to provide an independent opinion or conclusions  regarding an entity, operation, function,  process, system, or other subject matter. The nature and scope of the assurance  engagement  are determined  by the internal auditor. There are generally three parties involved in assurance services: (1) the person or group directly  involved  with  the entity, operation,  function,  process, system,  or other  subject matter-the process owner, (2) the person or group making the assessment-the internal auditor, and (3) the person or group using the assessment -the user.

Consulting services are advisory in nature, and are generally performed at the specific request of an engagement client. The nature and scope of the consulting engagement are subject to agreement with the engagement client. Consulting services generally involve two parties: (1) the person or group offering the advice - the internal auditor, and (2) the person or group seeking and receiving the advice the engagement  client. When performing consulting services,  the internal  auditor should maintain objectivity and not assume management responsibility.  Chattanooga State Community College's management has the primary responsibility for establishing and maintaining a sufficient system of internal controls.

3. Audit Standards

The internal audit function adheres to mandatory elements of the Institute of Internal Auditors' International Professional Practices Framework, including the Definition of Internal Auditing, the Code of Ethics, the International Standards for the Professional Practice of Internal Auditing (Standards), and the Core Principles for the Professional Practice of Internal Auditing. These mandatory elements constitute principles of the fundamental requirements for the professional practice of internal auditing and for evaluating the effectiveness of the internal audit activity's performance.

4. Authority and Scope

Internal audit's review of operations may include the examination and evaluation of the effectiveness of all aspects of institutional operations at (name of institution.) In the course of its work, internal audit has complete and direct access to all (name of institution) books, electronic and manual records, physical properties, and personnel information relative to the performance of duties and responsibilities.  All documents and information given to internal audit during their work will be handled in the same prudent manner that (name of institution) expects of the employees normally accountable for them.

5. Organizational Status/Reporting  Structure

In accordance with T.C.A. 49-14-102 and TBR Policy 4-01-05-00, Internal Audit, the System­ wide Chief Audit Executive reports directly to the Audit Committee and the TBR.   (Name of institution)'s internal auditor reports to the President with audit reporting responsibility to the Audit Committee and the Board through the System-wide Chief Audit Executive.

The internal auditing services provided by the internal audit office are reported directly to the President and the TBR Audit Committee. All audit work is summarized in timely written reports distributed to management to ensure that the results are given due consideration.  In addition to management, reports or summaries are distributed to members of the Audit Committee and to the State of Tennessee, Comptroller's Office.  Management is provided a discussion draft of the audit report prior to the report being issued.  Internal audit is responsible for following up timely on audit findings to ascertain the status of management's corrective actions.

6. Independence  and Objectivity

Internal  audit  has  neither  direct  responsibility  for,  nor  authority  over,  any  of  the  actlvttles, functions, or tasks it reviews, nor shall their review relieve others of their responsibilities.   The internal auditors must maintain a high degree of independence and not be assigned duties or engage in any operations or decision making  in any activities that they would normally  be expected  to review or evaluate as part of the normal audit function.

7. Responsibility and Role

TBR Policy 04:01:05:00, Internal Audit, states the role of internal audit is to assist members of the organization  in  the effective  discharge  of their  responsibilities.    Meaningful  internal auditing requires  cooperation   among  internal  audit,  (name  of  institution)'s  administration,  and  the department under audit.  ln fulfilling their responsibilities, internal audit will:

•    Comply with auditing standards established by the Institute of Internal Auditors to ensure the effectiveness and quality of the internal audit effort.

•    Develop and implement audit plans and programs after consultation with the President that respond to both risk and cost effectiveness criteria.

•    Review  the  reliability  and  integrity  of  information,   and  the  information   technology processes that produce that information.

•    Verify compliance with applicable policies, guidelines, laws, and regulations.

•    Suggest  policies  and  procedures  or  improvements  to existing  policies  and  procedures where appropriate.

•    Provide   audit  reports  that  identify  internal  control   tssues  and  make  cost-effective recommendations to strengthen control.

•    Facilitate  the  resolution  of audit  issues with  administrators  who  have  the most  direct involvement and accountability.

•    Review institutional operations (financial and other) on an advisory  basis to inform and assist management in the successful execution of their duties.

•    Assist with audits or perform certain agreed upon procedures for external parties. External parties include but are not limited to audit offices of federal and state governments  and related agencies.

•    Review   management's   risk   assessment   process   and   advise   management   on   the reasonableness and propriety of the assessment.

•    Promote   and  evaluate   fraud  prevention  and  identification   programs  and  investigate allegations involving fraud, waste, and abuse.

•    Demonstrate and promote appropriate ethics and values within the organization.

•    Communicate   activities  and  information  among  the  board,  internal  auditors,  external auditors and the administration.

8. Quality Assurance and Improvement

Internal audit will maintain a quality assurance and improvement  program that covers all aspects of the internal audit activity.   The program will include an evaluation of the internal audit's conformance with  the Standards  and an evaluation  of whether  the internal  auditors  apply  the Institute  of  Internal  Auditors'  Code  of Ethics,  Definition  of  Internal  Auditing,  and  the Core Principles  for the Professional  Practices  of Internal  Auditing.   The  program  will include  both internal and external assessments.  The System-wide Chief Audit Executive will communicate the results of the assessments to the Audit Committee.

9. Periodic Review of Internal Audit Charter

This charter will be periodically assessed by the Chief Audit Executive to determine whether the purpose, authority, and responsibilities  defined  in this charter are adequate to enable the internal auditing activity to accomplish its objectives.   The results of the periodic assessment will be communicated  to senior management and the Audit Committee.

 

Dr. Rebecca Ashford                                                                     April 19, 2018
President, Chattanooga State Community College                          Date

 

Kimberly Clingan                                                                           April 19, 2018

Auditor, Chattanooga State Community College                            Date

 

             

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